The Department of Labor (DOL) released its annual adjustments for civil monetary penalties affecting various benefit plan related violations. Below are highlights of the more common penalties.
Required to be filed by most ERISA plans, the maximum fee for filing a late Form 5500 is $2,140 each day the Form is late. Previously the fee was $2,097.
Reports and Recordkeeping
A failure to provide benefit statements to certain former participants and beneficiaries and failure to maintain records as required under ERISA increased from $28 to $29 per day.
The penalty increase for failing to provide blackout notices (mandatory ahead of specific time frames when participants cannot make certain plan changes) and/or notices of diversification rights increased from $133 to $136 per day.
Group Health Plans
Failure to provide annual Summary of Benefits Coverage or “SBC” for certain group health plans increased from $1,105 to $1,128 per failure.
Increases have also been made to other penalties that may be assessed for benefit plan violations as determined by the DOL. Please contact your Nyhart consultant with questions about your plan’s compliance or the DOL’s adjustments.